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How this is relevant to a mortgage is that I plan to buy a house this year - in the fall if my landlord will extend my lease six months.
I drive a stick shift; I'm currently unable to use my clutch without major pain. I look like this:
I don't have the use of anyone else's car, and, if you drive stick you can't drive for up to 8 weeks after foot surgery.
None of this is good...
Anyway, I'd planned on trading in my car late NEXT year. Say I do it this year, maybe in a month or so ... any new credit will bring down my FICO I know, but do you think it'll recover by say September? If I extend my lease six months it'll end at the end of October.
My alternatives are: 1) go nowhere for eight weeks (I live alone, do not really have people to drive me everywhere) or 2) rent an automatic before the surgery for a month or so (yikes)
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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You never want to buy a new car that soon before a mortgage. If it were me, I'd sell the car yourself now. Use some of the money to rent an automatic, then save the rest toward the down payment on the new one after the mortgage loan has closed.
Depending on where you are a car rental is not that bad, some will give a good weekly rate. We recently rented a Focus in southern CA for $17/day
and that was for just 3 days. That's only about $500/month to save your credit.
If you have good credit it does not hurt your score to get a new car loan. If you aren't tight on the debt to income ratio you can certainly buy a car right now. Have a lender look at your #'s and determine if a new car loan would even be close to knocking you out of qualifying.
If you have good credit it does not hurt your score to get a new car loan. If you aren't tight on the debt to income ratio you can certainly buy a car right now. Have a lender look at your #'s and determine if a new car loan would even be close to knocking you out of qualifying.
Tim is spot on here. Mortgage rates and 'ability' to borrow are measured in both debt exposure, score and on time payments.
Best to get those specific details out to a loan officer before buying a new car.
Goodluck
Thanks all! I'm going to speak to a loan officer next week. I do have a car loan now, not totally sure of my payoff at the moment but my outstanding balance is definitely a lot less than a new car would be. My landlord said she'd extend my lease so the new lease would be up at the end of October.
You never want to buy a new car that soon before a mortgage. If it were me, I'd sell the car yourself now. Use some of the money to rent an automatic, then save the rest toward the down payment on the new one after the mortgage loan has closed.
Exactly! I am refinancing a rental home I have and almost bought a new car before doing this. I would of never been able to refinance if I would of done this. My debt/ratio would of been too high. I am waiting until I close on this and then may considering buying the car.
If you have good credit it does not hurt your score to get a new car loan. If you aren't tight on the debt to income ratio you can certainly buy a car right now. Have a lender look at your #'s and determine if a new car loan would even be close to knocking you out of qualifying.
Yep. If you can afford it and have good credit, don't worry about the new car loan.
I think this is more of a worry for people who are on the edge. In which case I wouldn't advise buying anything.
It'll be interesting to see what they say - I do have good credit, but I have a lot of student loan debt. Still holding out hope that I can hold off on this surgery for a long time! Wishful thinking...
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